Search Share Prices
EServGlobal warns profit to fall short of previous guidance
Australian mobile finance technology group eServGlobal (ESG) announced on Wednesday revenue would likely fall short of previously issued guidance due to delays in the signing of certain significant orders.
In a trading update for the 14 months ended 31 December 2017, eServGlobal said that revenue for the period was expected to be in the region of 8.3m to 8.5m after agreements worth 3m for the AIM-quoted firm that had been scheduled for completion in December had not been signed until January.
ESG used fundraising proceeds to remove roughly 2m of annual costs from the business in the second half of the financial year and expected the current trading year to kick off with an annualised total cost base on an adjusted like-for-like basis of around 12.8m.
John Conoley, eServGlobal executive chairman said, "Forecasting of precise order timing remains a difficult discipline in the markets in which the core business operates, and yet the shortfall of revenue is still in play for FY2018. eServGlobal is pleased to have started FY2018 with two significant orders in the core business that were delayed from FY2017.
"As was planned we now start the new financial year in a stronger position than the comparative period FY2017. Furthermore, the board remains confident in the immediate and longer-term opportunities presented by the HomeSend Joint Venture," he added.
As of 0840 GMT, shares had retreated 10.11% to 11.24p.